2002-318ORDINANCE NO. 2002- 0 / 0
AN ORDINANCE TRANSFERRING AMOUNT IN THE RATE STABILIZATION FUND TO
THE CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS; PROVIDING
FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN
EFFECTIVE DATE.
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the ordinance authorizing the issuance of City of Denton, Texas Utility
System Revenue Refunding Bonds, Series 1983 (the "1983 Ordinance") was adopted by the City
of Denton (the "City") on March 10, 1983; and
WHEREAS, pursuant to the 1983 Ordinance and other subsequent ordinances (the "Other
Bond Ordinances", and collectively with the 1983 Ordinance, the "Bond Ordinances"), the City
has heretofore issued the following revenue bonds that are currently outstanding:
City of Denton Utility System Revenue Bonds, Series 1992, dated March 1, 1992;
City of Denton Utility System Revenue Bonds, Series 1993, dated March 1, 1993;
City of Denton Utility System Revenue Refunding Bonds, Series 1993-A, dated Junel,
1993;
City of Denton Utility System Revenue Refunding bonds, Taxable Series 1993-13, dated
June 1, 1993;
City of Denton Utility System Revenue Bonds, Series 1996, dated May 1, 1996;
City of Denton Utility System Refunding Bonds, Series 1996-A, dated May 1, 1996;
City of Denton Utility System Revenue Bonds, Series 1998, dated March 15, 1998;
City of Denton Utility System Refunding Bonds, Series1998-A, dated July 1, 1998;
City of Denton Utility System Refunding Bonds, Series 1998-B, dated August 1, 1998;
City of Denton Utility System Revenue Bonds, Series 2000-A, dated April 15, 2000;
City of Denton Utility System Revenue Bonds, Taxable Series 2000-B, dated April 15,
2000;
City of Denton Utility System Revenue Refunding and Improvement Bonds, Series 2001,
dated April 15, 2001;
City of Denton Utility System Revenue Bonds, Series 2002-A, dated April 1, 2002;
City of Denton Utility System Revenue Bonds, Taxable Series 2002-B, dated April 1,
2002; and
WHEREAS, defined terms used in this ordinance shall have the meaning given such
terms in the Bond Ordinances; and
WHEREAS, the City has established a separate Rate Stabilization Fund (the "Rate
Stabilization Fund") for the purpose of stabilizing utility system rates for ratepayers; and
WHEREAS, the Rate Stabilization Fund has been funded with excess revenues of the
System; and
WHEREAS, in order to maintain stable rates and to provide sufficient Net Revenues as
required by the Bond Ordinances, the City finds it necessary and desirable to transfer certain
moneys in the Rate Stabilization Fund to the System Fund to be used to pay expenses of
operation and maintenance of the System; NOW, THEREFORE
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS:
Section 1. In each fiscal year, the City hereby agrees to transfer the Transfer Amount (as
defined below) from the Rate Stabilization Fund into the System Fund for the purpose of paying
the current expenses of operation and maintenance of the System.
Section 2. The Transfer Amount shall be an amount of moneys and investments
contained in the Rate Stabilization Fund equal to the amount for each fiscal year of the City that
will, when added to the expected Net Revenues of the System for that fiscal year, produce an
amount of Pledged Revenues during such fiscal year at lest equal to the greater of 1.25 times the
average annual principal and interest requirements of all then outstanding Parity Bonds and
Additional Bonds; or 1.25 times the succeeding fiscal year's principal and interest requirements
of all then outstanding Parity Bonds and Additional Bonds.
Section 3. The Transfer Amount will be calculated and reflected in the annual budget for
each fiscal year and will, on the fist day of such fiscal year, be transferred from the Rate
Stabilization Fund into the System Fund.
Section 4. That all ordinances or parts of ordinances in force when the provisions of this
ordinance became effective which are inconsistent, or in conflict with the terms or provisions
contained in this ordinance are hereby repealed to the extent of any such conflict.
Section 5. That if any section, subsection, paragraph, sentence, clause, phrase or word in
this ordinance, or application thereof to any person or circumstances is held invalid by any court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have
enacted such remaining portions despite any such invalidity.
Section 6. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the `a day of~,Q/1!///~t~ 2002.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: L,~/,
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
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